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Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (369)	12/13/1999 11:38:00 AM
From: slacker711	Read Replies (2) \| Respond to of 1471

Competition lowering rates.... Open the gates The ongoing price war between two leading PSUs, MTNL and VSNL, is an indication of the benefits of competition. The internet sector has presented a stark contrast to the basic and cellular sectors where competition has been hobbled by restrictive entry policies and an uncertain policy environment has restricted competition. In a sense, the development of the internet sector is an indication of a positive learning effect on the part of the government. Licences were freely issued and the licence fee is nominal. Consequently, the internet has seen a level of competition and innovative tariff packages which basic and cellular services sector are yet to see. It is worth noting that the drastic fall in tariffs began when the internet sector was thrown open to the private sector. The resultant competition has forced down tariffs. While VSNL remains by far the leading ISP with a subscriber base of over 3,00,000, private ISPs like Satyam (1,00,000) and Bharti-BT (50,000) are beginning to build up numbers. The priority for the government should be to frame a cogent gateway policy for ISPs. While the private sector has been allowed to set up gateways in principle, the actual process has been excruciatingly slow. While security guidelines have been drawn up, the modalities of allocating bandwidth to the ISPs is still being finalised. As of now, government policy is to prefer Indian satellites followed by satellites — such as Intelsat — in which VSNL has an equity stake. Foreign satellites would only be preferred if these two options are not available. As a matter of principle, this restriction should go and ISPs should be free to negotiate with satellite providers. The allocation of frequency bandwidth on Indian satellites, on Intelsat and on submarine cables is through VSNL, a restriction which also needs be removed. VSNL is a rival to the private ISPs. The latter should not be dependent on VSNL for a crucial aspect of their operations. India is poised for an internet boom. The government should do whatever possible to help the process along.